US IPO Week: Connectivity Solutions and Microcaps in an IPO Week 5

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After a week of postponements and pricing delays, two tech IPOs and three holdbacks are expected to bring in $412 million in the coming week.

Connectivity solutions provider Credo Technology Group (CRDO) plans to raise $275 million at a market capitalization of $1.8 billion. Credo’s solutions are optimized for optical and electrical Ethernet applications, and its product families include integrated circuits, active power cables and SerDes chips.

Unprofitable with accelerated growth in 1H FY21, the company is relatively small and competes with much larger players. New investors reported on $120 million from the IPO (44% of the deal).

Ad Tech Platform Direct Digital Funds (DRCT) plans to raise $32 million at a market cap of $123 million. Direct Digital is a full-service, end-to-end programmatic advertising platform focused on both buy-side and sell-side digital advertising. The company is profitable and, although it has experienced explosive growth, it has been mainly fueled by acquisitions.

Three remnants of last week set to debut: Australian green energy company Verdant Earth Technologies (VDNT) plans to raise $50 million at a market cap of $201 million, publicly traded Modular Medical (OTCQB:MODD) plans to raise $30 million at a market cap of $130 million and medical device maker Samsara Vision (SMSA) plans to raise $25 million at a market cap of $153 million.

U.S. IPO Schedule

Transmitter

Business

Transaction size

Market capitalization

Price scale

Shares deposited

High

Bookkeepers

Credo Technology (CRDO)

San Jose, California

$275 million

$1,758M

$10-$12

25,000,000

Goldman

BofA

Provides semiconductor solutions for optical and electrical Ethernet applications.

Direct Digital Funds (DRCT)

Houston, TX

$32M

$123 million

$7-$9

4,000,000

Reference Roth Cap.
Provides an end-to-end programmatic advertising platform for SMBs.

Samsara Vision (SMSA)

Distant Hills, New Jersey

$25 million

$153 million

$5 to $7

4,166,667

Think Equity
Manufactures medical implants for retinal diseases, including AMD.

Modular Medical (OTCQB:MODD)

San Diego, California

$30 million

$130 million

$12.49

2,401,922

Oppenheimer
Development of a portable insulin pump.

Verdant Earth Tech (VDNT)

Sydney, Australia

$50 million

$201 million

$7-$9

6,250,000

Roth beanie.
Repurposes traditional power stations to run on renewable fuel in Australia.

Blocking periods will expire for up to 19 companies in the coming week.

IPO market overview

The Renaissance IPO Indices are market capitalization weighted baskets of newly public companies. As of 01/20/2022, the Renaissance IPO Index was down 19.0% year-to-date, while the S&P 500 was down 5.9%. Renaissance Capital IPO ETF (NYSEARCA: IPO) tracks the index, and top ETF stocks include Uber Technologies (NYSE: UBER) and snowflake (NYSE: SNOW).

The Renaissance International IPO Index is down 3.9% year-to-date, while the ACWX is down 0.8%. Renaissance Capital International IPO ETF (NYSEARCA: IPOS) tracks the index, and top ETF stocks include Volvo Car Group (OTCPK: VOLAF) and Kuaishou (OTCPK: KUASF).

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Editor’s note: The summary bullet points for this article were chosen by the Seeking Alpha editors.

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